State election setback for Schroeder

Chancellor Gerhard Schroeder’s party emerged weakened from elections in a small German state, where voters’ frustration with high unemployment helped make opposition conservatives the strongest force.

But the Christian Democrats narrowly failed to win enough votes Sunday in Schleswig-Holstein to unseat Schroeder’s Social Democrats, leaving a tiny party representing the state’s Danish-speaking minority as kingmaker.

Schroeder today called the result in the state, governed by Social Democrats since 1988, “a very special situation”. His party had its worst showing in the state since 1958 and was expected to start coalition talks tomorrow.

Despite the near miss, Christian Democratic leaders claimed that pulling ahead in the popular vote gave them momentum for May elections in North Rhine-Westphalia – a Social Democrat-led state that is the year’s biggest electoral prize.

“We addressed all the topics that were important to voters in Schleswig-Holstein, above all else unemployment,” Christian Democratic chairwoman Angela Merkel said. She called the result “a good omen”.

The election was seen as an indicator of the strength of Schroeder’s government, which suffered defeats in several state elections last year after pushing through a raft of unpopular reforms to social programs in a bid to boost the economy.

“Of course it gives us something to think about,” said Social Democratic party head Franz Muentefering.